Arla Foods has entered into a deal to acquire family-owned cheese manufacturer Tholstrup Cheese in a move designed to strengthen the group’s international brands, the Danish dairy company announced today (26 June).
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The Tholstrup family have decided to sell the business because they do not possess the necessary resources to further develop its speciality cheese market.
“It’s a good solution both for the family and for the company that Arla Foods is to take over Tholstrup,” says Finn Schiøtt Hansen, MD, Tholstrup Cheese Holding A/S. “Arla is ideally suited to develop our brands.”
Tholstrup manufactures a number of well-known cheese brands, including Castello and Saga, for sale primarily in Germany, the Nordic countries and North America. The cheese-marker generates annual turnover of approximately DKK830m within the mould and cream cheese segment and 82% of its products are exported. Tholstrup employs a workforce of 500 employees and produces 17,400 tons cheese and 6,200 tons pasta a year.
Over the past five years, Arla has invested heavily in expanding its cream cheese, mould cheese, feta and mozzarella production capabilities. This acquisition strengthens Arla’s presence in this market, and allows Arla to focus on branded growth.
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By GlobalData”Brands such as Castello and Saga have built solid positions in several markets,” commented Arla Foods’ MD Peder Tuborgh. ”Through our marketing and presence in the most important markets, we can give these strong quality brands a further lift.”
The acquisition includes five production plants in Denmark – three cheese dairies and two pasta plants – and a cheese production plant in Michigan, US.
The acquisition is conditional upon approval from competition authorities in countries affected. The purchase price was not disclosed.
